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CITY LODGE HOTEL GROUP

Year-end Results | June 2020

CITY LODGE HOTEL GROUP | YEAR-END RESULTS 30 JUNE 2020 2

DISCLAIMER

03 September 2020

Certain statements in this document may constitute ’forward looking statements’. Such forward looking statements reflect the company’s beliefs and expectations and involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of City Lodge Hotels Limited and its subsidiaries to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. City Lodge Hotels Limited undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document, or to reflect the occurrence of anticipated events. Past performance of City Lodge Hotels Limited cannot be relied on as a guide to future performance. Forward looking statements speak only as at the date of this document. You are cautioned not to place any undue reliance on such forward looking statements. No statement in this document is intended to be a profit forecast.

This document is being supplied to you for informational purposes only. This document is not a prospectus or an offer or

invitation or inducement to subscribe for or purchase any securities, and nothing contained herein shall form the basis of any contract or commitment whatsoever. This document does not constitute a recommendation regarding the securities of City Lodge Hotels Limited.

No representation or warranty, express or implied, is given by City Lodge Hotels Limited, its subsidiaries or any of their respective directors, prescribed officers, employees and affiliates or any other person as to the fairness, accuracy or completeness of the information (including data obtained from external sources) or opinions contained in this document, nor have they independently verified such information, and any reliance you place thereon will be at your sole risk. Without prejudice to the foregoing, no liability whatsoever for any loss howsoever arising, directly or indirectly, from any use of information contained in this document, or otherwise arising in connection therewith is accepted by any such person in relation to such information. None of the data in this document has been reviewed or reported on by the group’s auditors and no guarantee or warranty as to the data’s accuracy, expressed or implied, is given.

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YEAR-END RESULTS

CITY LODGE HOTEL GROUP | YEAR-END RESULTS 30 JUNE 2020

Financial Highlights 30 June 2020 30 June 2019 % change

Average group occupancies 38% 55% -17% points

Average SA occupancies 41% 58% -17% points

Revenue R1,16 billion R1,55 billion -25%

Earnings per share -1 329,4 cents 562,0 cents -337%

Headline earnings per share (HEPS) -388,1 cents 561,7 cents -169%

Normalised diluted HEPS -181,1 cents 613,4 cents -130%

Normalised diluted HEPS (excluding IFRS 16)

-26,3 cents 613,4 cents -104%

Total dividends declared per share 153,0 cents 366 cents -58%

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RIGHTS OFFER


Details Amount % of Rights Offer

Proceeds raised from the Rights Offer R1,2 billion

Rights offer price R2.12 per share

Subscription ratio 13 new shares to 1 held

Rights Offer share available for subscription 566,460,609 100%

Subscription for Rights Offer shares 551,419,156 97.3%

Applications for excess Rights Offer shares 291,615,438 51.5%

Excess Rights Offer shares allocated 15,041,453 2.7%

BEE SPV shareholding following Rights Offer 5.8%

The Rights Offer closed on 21 August 2020

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GROUP STRUCTURE


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OUR BOARD

Executive Directors:

• Andrew Widegger Chief Executive Officer

• Dhanisha Nathoo Chief Financial Officer

• Lindiwe Siddo Chief Operating Officer

Non-executive Directors:

• Bulelani Ngcuka Chairman

• Frank Kilbourn Lead Independent

• Deon Huysamer

• Sizakele Marutlulle

• Ndumi Madupe

• Stuart Morris

• Vincent Rague


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OUR MANAGEMENT TEAM

Executive Committee

• Andrew Widegger (Chief Executive Officer)

• Dhanisha Nathoo (Chief Financial Officer)

• Lindiwe Siddo (Chief Operating Officer)

• Tony Balabanoff (Divisional Director: Operations)

• Zuki Jantjies (Divisional Director: Sales & Marketing)

• Marcel Kobilski (Divisional Director: Human Resources)

• Naynesh Parbhoo (Divisional Director: Financial)

• Ross Phinn (Divisional Director: Operations)

• Neda Smith (Divisional Director: Information Technology)

• Patrick Tate (Divisional Director: Operations)

• Melanie van Heerden (Group Company Secretary)


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GROUP HOTEL PORTFOLIO

UPSCALE

UPPER MIDSCALE

ECONOMY


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BRAND OVERVIEW

Fairview Hotel• 1 hotel• 127 roomsCourtyard Hotels• 5 hotels• 381 roomsCity Lodge Hotels• 20 hotels• 3531 roomsTown Lodges• 14 hotels• 1804 roomsRoad Lodges• 22 hotel• 2059 rooms

TOTAL HOTELS – 62TOTAL ROOMS – 7902

Geographic spread of rooms

47,3

11,9

11,3

9,2

1,22,6

2,32,8

1,34,9

1,31,91,91,9

Gauteng 47.3% Western Cape 11.9% KwaZulu Natal 11.3%

Eastern Cape 9.2% Northern Cape 1.2% Mpumalanga 2.6%

North West 2.3% Free State 2.8% Limpopo 1.3%

Kenya 4.9% Botswana 1.3% Namibia 1.9%

Tanzania 1.9% Mozambique 1.9%


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DEVELOPMENT PIPELINE

• City Lodge Hotel Maputo, Mozambique Final 26 rooms tbc(148 rooms)

• Courtyard Hotel Waterfall City, South Africa March|April 2021(168 rooms)

Total hotels including development pipeline 63

Total rooms including development pipeline 8,070


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CAPITAL ALLOCATION

R’000

Investment to expand operations: 49,000

• City Lodge Hotel Maputo, Mozambique 12,700

• Town Lodge Umhlanga Ridge, South Africa 29,500

• Courtyard Hotel Waterfall City, South Africa 900

• Courtyards Hotel Rosebank and Sandton (additional units) 5,800

• Other 100

Investment to maintain operations: 53,800

• Solar Project 19,800

• IT infrastructure includes WiFi project 14,900

• Refurbishment of Road Lodge Rivonia 1,700

• Refurbishment of Road Lodge Southgate 2,300

• General Capex 15,100

* Rounded for presentation purposes


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SOUTH AFRICAN PORTFOLIO PERFORMANCE

• Average occupancy % decreased by 17% points to 41%.

• Average room rate increased by 2% compared to the prior year.

• Implemented strict cost containment measures to reduce the cash burn of the organisation following the travel restriction imposed by the COVID-19 Lockdown announcement at the end of March.

• Implemented industry leading hygiene and safety protocols to ensure guest and staff well-being. First in SA to receive the WTTC (World Travel and Tourism Council) Safe Travels accreditation.

• Completed our solar project which saw the installation of solar panels capable of delivering nearly 10% of our entire electricity consumption.


CITY LODGE HOTEL GROUP | INTERIM RESULTS 31 DECEMBER 2020 13

Courtyard Hotel Waterfall City – new buildartist’s impression

under construction


Courtyard Hotel Waterfall City – new build

artist’s impression

under construction


Courtyard Hotel Waterfall City – new build

Mock up room


BEYOND SOUTH AFRICA PORTFOLIO PERFORMANCE

• Lockdown measures and travel restrictions in all territories in which CLHG operates have resulted in mostly decreased occupancies for the year:

• Kenyan operation occupancies were down by 9 percentage points

• Gaborone occupancy was down 14 percentage points

• Windhoek in its 2nd year of operation was down 3 percentage points

• Tanzania also in its 2nd year of operation increased by 1 percentage point, although occupancies in the rest of the year continued to be below expectations.

• City Lodge Hotel Maputo opened its first rooms in February 2020 the remaining rooms have been put on-hold until trading operations re-open following the lock-down.


City Lodge Hotel Maputo – opened 2020


City Lodge Hotel Maputo – opened in 2020


BENEFICIAL SHAREHOLDERS EXCEEDING 1% at 30 June 2020Beneficial Holder % Holding

Allan Gray 13,02% 5 675 376

Enderle SA (Pty) Ltd 8,76% 3 816 479

New Shelf 934 (Pty) Ltd 5,87% 2 556 185

New Shelf 892 (Pty) Ltd 5,87% 2 556 120

Ninety One 5,71% 2 489 198

Public Investment Corporation 5,13% 2 236 131

Oasis Crescent Management Company 4,48% 1 950 829

Somerset Capital Management 3,36% 1 466 166

New Shelf 935 (Pty) Ltd 2,93% 1 278 060

Vanguard Investment Management 2,55% 1 110 971

Aberdeen Asset Management 1,73% 754 039

Fidelity International 1,73% 753 669

Abax Investments 1,64% 715 668

Old Mutual Investment Group 1,48% 643 822

Long 18 (Pty) Ltd 1,46% 637 377

Laurium Capital 1,45% 633 333

Nedbank Private Wealth 1,44% 629 005

Dimensional Fund Advisors 1,32% 573 802

Steyn Capital Management 1,29% 563 379

UBS (Custodian) 1,20% 523 364

72,44% 31 562 973


OUTLOOK

• The successful raising of equity of R1,2 billion through the rights offer will enable the repayment of the BEE debt, portion of the secured facilities and support working capital requirements.

• Prolonged lock-down and travel restrictions has resulted in low July (7%) and August (10%) occupancies.

• The move to level-2 in mid August has seen more bookings and travel interest in the domestic market.

• 2021 will remain challenging for the South African and Rest of Africa economies, as we continue to bear the impact of COVID-19 and the lockdown measures.

• 34 hotels are open, and the rest remain ready and flexible to open at short notice based on guest demand.

• New innovative offerings to improve the guest experience:

• IT innovation: paperless online check-in via CLHG app | QR codes for menus, COVID screening, payments and many other applications

• Product innovation: Zero Bar and plastic-free guest amenities | #YourPrivateOffice | Hydration Station through magnesium enriched filtered water dispensers and reduced plastic bottles

• F&B Innovation: boxed Pizzas as part of the ‘Eat In’ experience

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